Post by : Meena Ariff

The relationship between India and the United States has taken a sharp turn this week after top American leaders raised concerns over India’s continued oil and defense trade with Russia.

US Secretary of State Marco Rubio called India’s close ties with Moscow a “point of irritation” in India-US relations. His comments come right after US President Donald Trump announced that he would impose 25% tariffs on Indian goods, along with an extra penalty for buying Russian oil and weapons.

India’s Rising Russian Oil Imports

Rubio described India as both an “ally” and “strategic partner,” but said the US was disappointed by India’s high volume of oil purchases from Russia.

In 2024, 35% to 40% of India’s total oil imports came from Russia. This is a huge increase from just 3% in 2021.

India began buying more Russian crude oil after the Ukraine war began, and many Western countries imposed sanctions on Russia. Russia began offering oil at much lower prices to countries like India.

India’s Reason: Affordable Oil for the Poor

India has not directly replied to Rubio’s statements. But in the past, Indian officials have defended their decision, saying that as a major energy-importing country, India has no choice but to buy the cheapest oil to protect its people — especially the poor — from rising fuel costs.

Petroleum Minister Hardeep Singh Puri had earlier explained that India would always act in its best interest and could get oil from many other countries if US sanctions affected supplies from Russia.

India has expanded its group of oil suppliers from 27 countries to 40 countries.

Rubio Understands but Warns

Rubio admitted that India’s reasons make sense — it has a huge population and big energy needs, and Russian oil is cheaper. But he warned that this oil trade is still helping Russia fund its war in Ukraine.

He said that President Trump is frustrated that India is still buying so much oil from Russia when many other suppliers are available. Trump has even threatened penalties for Indian companies buying Russian weapons and oil.

Indian Oil Companies Reduce Russian Imports

Despite the strong statements from the US, Indian oil companies have already reduced their imports of Russian crude.

Major state-run companies like HPCL, BPCL, MRPL, and IOCL have not bought any Russian oil in the past week because the discounts offered by Russia are no longer attractive.

In 2023, the difference between Russian Ural oil and international Brent crude was around $20 per barrel. But now, the gap has dropped to just $3 per barrel.

That means the price advantage of Russian oil is almost gone, and it’s no longer a big saving for Indian refiners.

Petroleum Ministry Responds

The Petroleum Ministry has said it did not order state-run refiners to stop Russian oil imports. Instead, companies are making their own decisions based on cost and availability.

Experts say that if India shifts away from Russian oil, the effect on the economy will be very small. According to a report by CareEdge Ratings, this change won’t make a big impact on India’s current account deficit — the gap between what the country earns and spends internationally.

Trump’s Harsh Words Trigger Russian Reaction

Trump’s comments didn’t stop at criticizing India. He also posted a strong message about both India and Russia’s economies, calling them “dead economies” and saying he didn’t care what happened to their partnership.

This made Russia respond sharply. Dmitry Medvedev, the Deputy Chairman of Russia’s Security Council, warned Trump in a rather unusual way.

He mentioned the famous zombie TV show “The Walking Dead” and referred to a Cold War-era system known as the “Dead Hand” — a rumored Soviet tool that could launch nuclear missiles automatically if the country were attacked.

Medvedev’s message was clear: Russia would not take insults lightly and still had ways to protect itself.

What Happens Next?

Right now, the situation remains tense. India has tried to maintain friendly ties with both the US and Russia. But with pressure rising from Washington and warnings coming from Moscow, India may need to carefully manage its decisions in the months ahead.

The coming days will show whether Trump follows through with his tariff threats and how India’s foreign policy will evolve under growing global pressure.

India’s decision to buy discounted Russian oil has helped the country save money and protect its people from high fuel prices. But this same choice is now causing friction with the United States, a close partner in defense and trade.

With tensions rising, New Delhi must strike a careful balance — keeping energy costs low while managing its relations with two of the world’s biggest powers.